US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Most Asian currencies traded within a tight range on Friday as the U.S. dollar strengthened ahead of the closely watched U.S. nonfarm payrolls report, a key data point expected to shape expectations around U.S. interest rates. Currency markets across Asia remained cautious, reflecting investor hesitation before the release of employment data that could influence the Federal Reserve’s policy outlook.
The Japanese yen underperformed regional peers despite data showing stronger-than-expected household spending in November. The USD/JPY pair rose around 0.3%, moving back above the 157 level. While higher household spending could support inflation trends in Japan, earlier wage data disappointed markets, limiting optimism around the Japanese economy. Ongoing diplomatic tensions between Japan and China, including new economic measures from Beijing, further weighed on the yen.
The Chinese yuan remained largely flat, with the USD/CNY pair slipping nearly 0.1% and holding near its strongest level in about two and a half years. December inflation data showed China’s consumer price index rising to its highest level in nearly three years, supported by improved domestic demand and higher food prices. Producer price index data also showed deflation easing slightly. However, analysts cautioned that much of the CPI increase was seasonal and warned that structural deflationary pressures linked to overcapacity remain a longer-term challenge. Beijing is widely expected to roll out additional stimulus measures in 2025 to support growth following a prolonged post-pandemic slowdown.
The dollar index steadied after modest gains earlier in the week, as traders positioned cautiously ahead of the payrolls report, which is expected to show moderate job growth in December. Any signs of labor market resilience could reduce expectations for near-term interest rate cuts by the Federal Reserve.
Elsewhere in Asia, the South Korean won weakened, with USD/KRW rising 0.2% and marking one of the region’s weakest weekly performances. The Taiwan dollar and Singapore dollar also edged lower, while the Australian dollar dipped slightly. The Indian rupee hovered just below the 90-per-dollar mark, reflecting broader regional caution.
Overall, Asian foreign exchange markets remained subdued, balancing local economic data, geopolitical risks, and the looming impact of U.S. labor market signals on global currency trends.
